Earlier this year, Kava Labs announced the launch of its newest project, “Kava Swap.” The new platform will be an application for all DeFi apps and financial services across the space.
Initially, Kava Labs built its own blockchain ecosystem, which led to DeFi apps’ development. At the beginning of the year, the network released a roadmap of the year ahead. In addition to the launch of Kava Swap, Kava plans for two other cross-chain bridges, ethereum, and bitcoin.
In its official write-up, Kava commented that the introduction of Kava Swap is the “third synergistic pillar” of the DeFi ecosystem its creating.
So what is the swap?
Kava Swap is an Autonomous Market Making (AMM) protocol, which works cross-chain to utilize key features of the Kava platform.
Swap allows users to swap assets between different blockchains and stake their funds into market-making pools. If done, users have the ability to earn returns on what’s staked.
The platform has three main functions:
- Swap: This allows users to easily trade or swap between assets with guaranteed liquidity.
- Supply Liquidity: Users can make their digital assets productive by using them as capital in liquidity pools. The AMM uses the liquidity pools on Kava Swap when swapping between assets.
- Earn: Those who provide liquidity via capital staked in liquidity pools, earn both fees from traders and Kava Swap Token. The Kava Swap Token are the governance tokens of the application.
As it stands, the Kava Swap roadmap lays out four versions of the application. With each subsequent version, the platform adds bridges between other decentralized ecosystems. Along with new cross-chain bridges, updates to governance and scalability come along with each new version.
The V1 one of the applications supports swaps between BTC, XRP, BNB, BUSD, USDX, KAVA, HARD, and SWP. At this stage addition of new assets and liquidity pools is possible through on-chain governance votes.
Kava Swap tokens and governance
As with all DeFi applications, governance tokens are key in operating a fully decentralized space. On Kava Swap, the tool to maintain decentralization is the Kava Swap token. It provides community members a voice in building the future of the application.
Those who hold Kava Swap tokens manage what assets are available on the platform, platform fees, and reward distribution. At the onset of the Kava Swap launch, 250 million Kava Swap Tokens will be minted. However, they will only be accessible for over 4 years.
Developers designed Kava Swap tokens with no intention of a seed or private sale. Instead, they will be released in stages with specific allocations.
- 55% — Community: these…
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